Should I Hire a Realtor | Looking for a Home VA Loans

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Why You Might Need a Realtor

Five Minute Read

Written by Ed Andrews III on April 15th, 2020

Are you asking yourself, “should I hire a realtor?”

Well the answer is absolutely yes. Should you hire your friend or cousin as your realtor? Unless they’re top performing real estate agents in that area, no you should not. Hang around, and I’m going to cover all the reasons why having a realtor on your team can be invaluable.

So let’s dig in and talk about the top seven reasons why the answer to “Should I hire a Realtor to buy a house” is almost always yes.

1. You Don’t Know The Market

You’re an expert at your profession, because you do it everyday. Unless you facilitate the buying and selling of real estate everyday, you’re not an expert on the market. When you’re looking for a home, you want an expert in your corner.

A good realtor knows what’s going on in the market, and what you can expect. While the internet provides a wealth of information to anyone looking for it, the application of that is what sets professionals apart from the general public.

2. They Negotiate Better Deals

I’m sure you’ve been able to score yourself some incredible bargains at garage sales, or even talked your internet service provider into extending your introductory rate for another year. But don’t be a bonehead and think any of that will matter when you’re face to face with a shark listing agent that does this everyday.

The data clearly shows that when people have agent-assisted home sales they receive more for the property. There’s some non-monetary things that need to be negotiated on the contract that a normal person will have no concept of. You need someone representing you on your side.

It’s like the old attorney adage, “a man who is his own lawyer has a fool for a client”.

3. They Have a Network You Can Plug Into

Close your eyes for a second. Think about that guy at your workplace who sucks terribly at his job. The one you can’t believe still works there. Well you might be surprised to know that your employer isn’t the only organization to hire that guy.

You’re going to need a loan officer, home inspector, termite/wood destroying insect inspector, insurance agent, maybe even a contractor. An experienced realtor will have a network of quality service providers they can connect you with.

This reduces the risk of you relying on someone that leaves you disappointed with the level of service, or even worse just proves to be incompetent.

4. Multiple Listing Service (MLS)

The MLS is the registry that listing agents publish available homes on. This registry is not open to the public. You’ll need a licensed agent to access it on your behalf. If you don’t have access to MLS it’s impossible for you to see all the homes that meet your parameters in the area you’re looking to buy in.

Websites like Zillow and their competitors are not updated in real time. Often when you are drooling over the pictures of a home you’ve found on one of these websites, it’s already sold. Be sure to watch my video “the truth about Zillow, Trulia, and realtor .com” for more insider information as to why it might be best to stay off these websites altogether.

If you’re in a hot market you’ll likely need to move fast on a property. The only way to do that is by having an agent who is going to be alerted when a property that meets your needs hits the market

5. They Have a Better Eye Than You

They look at houses everyday. A skilled agent knows when something is amiss. They’ll be able to point out some visible deficiencies with the property that you might very well overlook.

There may be issues that you notice and decide you’re okay with, that the realtor knows your lender won’t be okay with. Realtors can often spot potential problems that can kill a deal before you spend money on appraisals, inspections, option fees, etc.

6. They Do the Paperwork

Offers, contracts, amendments, addendums, bills of sale, amendatory clauses…the amount of documents involved in a real estate transaction before you ever get to closing can be overwhelming.

This is especially so if you don’t know how to fill any of it out. Realtors are familiar with the documents, and they understand what’s customary; and which party should be responsible for what. If you try to contract with a competent listing agent, I can all but guarantee the variables in that contract will favor their seller…not you.

7. It’s Free…I Guess

Call me cynical, but I’m of the school of thought that there’s no such thing as a free lunch. People have a habit of saying that a realtor is free for buyers. I guess that’s true in some sense, but you didn’t come to my channel to get a “sense of the truth”. You came here for the whole truth, so here it is. The listing agent will negotiate their fee with the seller before listing the home. Typically, this will be between five to six percent of the sales price.

The listing agent will split this commission with the buyer’s agent. That is in effect how your realtor will get paid. Their cut comes out of the fee the listing agent negotiated with the seller. That being said, the money from the sale of the house comes from you…the buyer. So you could make the argument that the price you contract to buy the house at pays the seller and both agents.

Some believe that if they don’t hire an agent to represent them they should be able to reduce the purchase price by the same amount that would have been paid to their agent. Seeing as how that would net the seller the same amount of money it makes sense.

But remember they’ve already agreed on a commission to pay their agent when the home sells. That doesn’t necessarily change because you don’t have an agent. In fact, you not having an agent just means the listing agent doesn’t have to split their commission. In most cases I don’t see buyers negotiating better deals for themselves as a result of not having an agent. In fact it’s usually the opposite.

Now that you understand the importance of having a realtor, you maybe asking how do I go about finding one. Before you just hop on Google and search for realtor near me, make sure you watch my video “how to find a realtor that knows VA lending”. I’m going to tell you the questions you need to ask to ensure you get paired with the right agent.

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About the Author:
Ed Andrews III

Ed Andrews III is a mortgage loan officer, and U.S. veteran of the Iraq & Afghanistan Wars. He is an expert on VA home loans, and dedicated to helping veterans achieve home-ownership.